July 12, 2004

George A. Cloutier, Chairman of Partner America® and Chairman and CEO of American Management Services, a Platinum Member of the United States Conference of Mayors, addressed Monday's plenary session of the 72nd Annual Conference of Mayors in Boston. He discussed the plight of small business owners across the country today.

"Small businesses are not only the heart of the American economy in good times; they are the driving force behind an economic turnaround. It has historically been small business, not large corporations that have pulled our nation out of economic slumps. And today, small businesses play an even greater role in the economic rebound of cities, both large and small," Cloutier said.

Concern among small business owners are the recent and proposed cuts within the Small Business Administration (SBA). SBA has been cut by 25 percent— more than any other major federal agency. And the cutbacks have left their mark. Just this year, the 7(a) loan program was halted costing small business borrowers $1 billion in loans. Recently there has been a proposal to eliminate all funding for the 7(a) program — a program that is responsible for 40 percent of all long-term small business lending in the country.

"We can ill afford these cuts. A healthy small business sector means healthy cities. As a nation, we cannot continue the one-size fits all approach to economic policies. Our economic well-being and job growth depends on an empowered small business community that will help cities flourish," Cloutier said.

As a strong and vocal advocate of small business, Cloutier supports funding the SBA at the levels endorsed by the authorizing Committees in Congress. If fully funded, the SBA's 7(a) program would create 500,000 new jobs each year; the SBA's Small Business Development Centers would create over 110,000 new jobs, while producing $400 million in tax revenues for state governments. In addition the federal government could meet its contracting goals and increase the number of contracts to HUB Zone firms by $4 billion a year, to women-owned businesses by $5 billion a year, and to service-disabled veterans by $7 billion a year.

"It is vital that our nation, states, and cities rally behind the cause of the small business. Small business is the key to our much needed and overdue economic recovery." Cloutier said, "We must protect the SBA and programs that nurture small businesses all around the country. A strong small business sector means a strong economy for us all... Small businesses. The true heart of the American Economy."